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Mexico, which depends largely on oil revenue, cuts public spending
Mexico, which depends largely on oil revenue, cuts public spending

The collapse in global oil prices forced Mexico on Friday to announce large cuts in public spending, threatening several major projects, including the government’s showcase but controversial bullet train out of Mexico City. Finance Minister Luis Videgaray announced cuts of about $8.5 billion, about 0.7% of Mexico’s gross domestic product. About a third of the Mexican government’s budget comes from oil revenue, and the price-per-barrel of Mexican crude has fallen in recent months from about $100 to $38. Videgaray said the “adjustments” were preventive and responsible and aimed at “protecting stability and the economy of Mexican families.” In...

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